Green Mountain Coffee Roasters is attracting attention from hedge funds who like what they see: a fast-growing company with a ramping stock and a big short position.
That’s a recipe for the old squeezola. GMCR has more than quadrupled since March 2009. More recently, the stock has soared a stunning 35% since Feb. 2. On Monday, the shares jumped so quickly (10% in less than five minutes), that it triggered a rare single-stock circuit breaker, which paused trading for five minutes.
GMCR’s story is that its position in the fast-growing single-cup coffee market is strong and getting stronger. Chatter of a link-up with Starbucks is the latest positive element to the company’s story. But as is the case with high-flyers, the share price has been volatile. Shares got wacked in December after providing a less than glowing outlook. They rebounded sharply earlier this month after a stronger-than-expected earnings report.
According to the most recent 13F filings (12/31/10), a number of funds have initiated big positions in GMCR, according to LionShares. Coatue Management initiated a position at 4 million shares. TCW initiated a position at 2.6 million shares. Westfield Capital did so with 1.9 million shares....MORE